Oil slips below $80 on Saudi pledge to increase output
Saudi Arabia says it will raise output to 11 million bpd
Oil slipped below $80 a barrel on Monday as Saudi Arabia pledged to raise its crude production to a record, two weeks before US sanctions potentially choke off Iranian crude supplies.
Saudi Energy Minister Khalid Al Falih told Russia's TASS news agency that his country had no intention of unleashing a 1973-style oil embargo on Western consumers, but rather was focused on raising output to compensate for supply losses elsewhere, such as Iran.
Al Falih said Saudi Arabia would soon raise output to 11 million barrels per day (bpd) from the current 10.7 million. He added that Riyadh had capacity to increase production to 12 million bpd.
Several US lawmakers have suggested imposing sanctions on Saudi Arabia over the killing of journalist Jamal Khashoggi. The kingdom, the world's largest oil exporter, pledged to retaliate against any sanctions with "bigger measures".
"Oil prices are pointing lower again, with Saudi credit default swaps ballooning," said Stephen Innes, head of trading at foreign-exchange trader Oanda.
Brent crude futures were down 39 cents at $79.39 a barrel by 1333 GMT, while US crude futures fell 45 cents to $68.67.
"As far as next year's supply/demand balance is concerned, it's not justified for them [Saudi Arabia] to increase production," PVM Oil Associates strategist Tamas Varga said. - Reuters
24k gold in Dubai is priced at Dh225.25 and shoppers can indulge in... READ MORE
New tabs to make discovering videos, shopping experiences more easy. READ MORE
The rupee started on a flat note against the greenback as RBI... READ MORE
Private-sector lenders IndusInd Bank, ICICI Bank and Axis Bank fell... READ MORE
Nearly 17 million tests have been conducted in the country. READ MORE
Safety reasons cited for calling off shows at Dubai's The Pointe. READ MORE
Rulers of emirates and children plant seeds for the future in... READ MORE
Double the joy for residents on December 2. READ MORE